- Argentine President Javier Milei has been sued for allegedly promoting a cryptocurrency before its sudden collapse
- Investors claim they suffered heavy losses after Milei endorsed $LIBRA, leading to accusations of fraud
- The president has denied wrongdoing, but legal experts say the case raises serious ethical concerns
Argentine President Javier Milei is facing a lawsuit over allegations that he played a key role in a “pump and dump” scheme involving the cryptocurrency $LIBRA. The lawsuit, filed by a group of lawyers and economists, claims Milei’s public endorsement of the token led to an artificial price surge before a dramatic crash that left investors with significant losses. While the president has denied any direct involvement, critics argue his actions may have violated Argentina’s Public Ethics Law.
$LIBRA Promotion Sparks Complaints
The controversy began when Milei used his social media platform to promote $LIBRA, calling it an initiative that would support small businesses and economic growth. The endorsement led to a rapid increase in the token’s value, attracting thousands of investors eager to cash in on what seemed to be a government-backed project. However, within hours, the cryptocurrency’s price collapsed, wiping out millions in investments.
A lawsuit was swiftly filed against the president, accusing him of knowingly manipulating the market. One of the plaintiffs, lawyer Jonatan Baldiviezo, stated, “Milei’s actions were essential in creating the illusion of credibility, which lured investors into a trap.” The case argues that this qualifies as fraudulent behavior under Argentina’s financial laws.
President “Unaware” of Issues
In response, Milei’s administration has distanced itself from the cryptocurrency project, insisting the president had no role in its development. A government spokesperson claimed that Milei deleted his promotional post once he learned more about $LIBRA’s operations. “The president was unaware of the details and took immediate action to prevent further confusion,” the statement read.
Despite these claims, the scandal has prompted further scrutiny. Argentina’s Anti-Corruption Office has launched an investigation into whether any government officials had financial ties to $LIBRA. Experts argue that even if Milei was not directly involved, his influence as a public figure played a crucial role in the token’s market behavior.
$LIBRA Creator Blames Milei
Adding to the controversy, Hayden Davis, the entrepreneur behind $LIBRA, accused Milei of orchestrating the token’s downfall. In a video statement, Davis alleged that Milei’s sudden withdrawal of support caused the crash, suggesting there were undisclosed agreements behind the scenes. “His team misled us, and the investors paid the price,” Davis said.
With legal action underway, the case could set a precedent for how political figures engage with financial markets in Argentina. Whether Milei is found guilty of fraud or escapes legal consequences, the scandal has already cast a shadow over his administration’s handling of economic policies.
